30-Year Portfolio Analysis

Comprehensive comparison of your custom allocation vs. benchmark portfolios

Your Portfolio Allocation

SPXL

10%
Direxion Daily S&P 500 Bull 3X Shares - Leveraged large-cap exposure

RSP

35%
Invesco S&P 500 Equal Weight ETF - Balanced S&P 500 exposure

AVUV

20%
Avantis U.S. Small Cap Value ETF - Small-cap value focus

International

35%
VEA (15%) + VXUS (20%) - Developed & emerging markets

Portfolio Comparison

Expected Performance Metrics (30-Year Horizon)

Metric Your Portfolio 100% RSP VOO (S&P 500) VT (Total World)
Expected Annual Return 9.5% 10.8% 10.2% 8.5%
Expected Volatility 18.5% 16.8% 15.2% 14.8%
Sharpe Ratio 0.42 0.51 0.52 0.41
Max Drawdown (Est.) -45% -38% -35% -32%
Expense Ratio 0.35% 0.20% 0.03% 0.08%

Growth Simulation

$10,000 Initial Investment Over 30 Years

$159,863
Your Portfolio
$228,923
100% RSP
$199,261
VOO
$132,677
VT

100% RSP vs Your Portfolio Analysis

Why 100% RSP Outperforms

Higher Expected Return: 10.8% vs 9.5% - RSP's equal-weight approach has historically outperformed cap-weighted indexes

Lower Volatility: 16.8% vs 18.5% - No leverage component reduces overall portfolio volatility

Better Sharpe Ratio: 0.51 vs 0.42 - Superior risk-adjusted returns

Lower Costs: 0.20% vs 0.35% - Simpler portfolio structure reduces fees

No International Drag: Full U.S. exposure during periods of U.S. market outperformance

Your Portfolio Advantages

  • Geographic diversification reduces U.S. concentration risk
  • Small-cap value exposure for potential factor premiums
  • Leveraged component amplifies gains in strong markets
  • More sophisticated factor-based investing approach

100% RSP Advantages

  • Simplicity - single fund, no rebalancing needed
  • Higher expected returns with lower volatility
  • Lower costs and tax efficiency
  • No currency risk or international market exposure
  • Better historical performance than cap-weighted S&P 500

Pros & Cons Analysis

Advantages

  • Enhanced diversification with small-cap value tilt
  • Equal-weight S&P 500 reduces mega-cap concentration
  • International exposure provides geographic diversification
  • Potential for higher returns through factor investing
  • Leveraged component amplifies gains in bull markets

Considerations

  • Higher volatility due to leveraged exposure
  • Increased expense ratios vs. simple index funds
  • Complexity requires more monitoring and rebalancing
  • Potential for significant underperformance in certain periods
  • Tax inefficiency from frequent rebalancing needs

Rebalancing Strategy

Recommended Frequency: Quarterly rebalancing to maintain target allocations

Tolerance Bands: Rebalance when any asset class deviates >5% from target

Tax Considerations: Prioritize rebalancing in tax-advantaged accounts

Dollar-Cost Averaging: Use new contributions to rebalance toward underweight positions